Nearly 100,000 trees have been planted and 18,000 cubic meters of toxic waste treated and removed; new financing will continue the clean-up and expand environmental monitoring WASHINGTON, May 10,... Show More + 2013 — The World Bank Board of Executive Directors today approved a US$4.2 million Additional Financing for the Kosovo Energy Sector Clean-up and Land Reclamation Project to continue addressing environmental issues, remove hazardous chemicals from an old gasification site, and build capacity for environmental good practices in the mining and energy sector The additional financing will boost support to project activities that are currently under way: removing and properly disposing of tar sludge and tar deposits, planting trees at overburden dumps, and reclaiming land for natural habitats or community development. New activities will also be financed, including air monitoring equipment to measure baseline air quality data, soil and water monitoring to collect data on current pollution levels, an Environmental and Social Impact Assessment (ESIA) for the proposed Kosovo Power Project, an international Panel of Experts to review the ESIA and resettlement process, and the development of a low-carbon growth energy strategy.“The World Bank is serious about clean energy, and is supporting Kosovo in various ways to achieve its long-term goal of modernizing its energy system” said Ellen Goldstein, World Bank Country Director and Regional Coordinator for Southeastern Europe. “Replacing the highly-polluting Kosovo A power plant with state-of-the-art clean technology, investing in renewable energy alternatives and promoting energy efficiency are all integral elements of our support for Kosovo. Equally important is this Clean-up and Land Reclamation Project, which addresses severe environmental legacy problems and builds capacity for good practices and strong environmental monitoring in the future.”Since 2007, the Clean-up and Land Reclamation Project has been addressing the legacy of more than 40 years of coal-fired power generation. Kosovo's oldest power plant, Kosovo A, has emitted vast quantities of ash into the surrounding area, polluting the air and creating a hill of ash visible from the capital ten kilometers away. With support from the World Bank, the Government of Kosovo has rehabilitated most of the ash hill and stopped its slide towards neighboring houses. Almost 156 hectares of the ash that have been disposed at the ash dump have been leveled and reshaped and covered by soil. When the planned wet ash system becomes operational (halting ash dumping), the remainder of the ash dump will be reshaped and covered with soil.This project has already financed the planting of nearly 100,000 trees on dump areas, which also have been stabilized. Today, more than 600 hectares have been made available for natural habitats and community development or other land use purposes. As part of the project, about 18,000 cubic meters of toxic waste from an abandoned gasification plant (tars, benzene, phenols, methanol, and oily compounds), in deteriorating and risky condition, have been treated and removed from the site. The Additional Financing approved today will make possible the removal of any remaining priority toxic waste found at the site and its proper disposal. This Additional Financing also will fund three online air quality monitoring stations in the area of the proposed new power project, allowing for the collection of reliable baseline data on air quality for the first time in Kosovo. An elaborate soil and water sampling and laboratory analysis program will also be undertaken to collect and analyze the baseline environmental data in the soil, groundwater and surface water, and river sediments. An Environmental and Social Impact Assessment for the proposed Kosovo Power Project and associated infrastructure will be conducted in order to inform the decision-making process of the proposed investment, including the Bank’s decision on a proposed partial risk guarantee, and to increase the monitoring and management capacity of the Government of Kosovo. In addition, the implementation of the Resettlement Action Plan (RAP) for the Shala neighborhood of Hade village near the coal mine will be monitored. An International Independent Panel of Environmental and Social Experts will be recruited for both the ESIA as well as the RAP to assist the Government of Kosovo in preparation and implementation. A low-carbon growth energy strategy will be prepared to help to reduce energy demand and promote renewable energy projects for prospective investments by the private sector and others, identifying opportunities for reducing future demand of electricity, increasing power generation without additional emissions, and possibly reducing Greenhouse Gas (GHG) emissions.The total cost of the Kosovo Energy Sector Clean-up and Land Reclamation Project so far has been US$13.65 million, consisting of IDA grant funding of US$10.5 million and a contribution from the Kosovo Energy Corporation of US$3.15 million. Activities were also supported by a Dutch Government grant of around US$3.81 million. The US$4.2 million credit approved today by the World Bank will be accompanied by a separate grant from the Government of the Netherlands of around US$1.13 million. Show Less -

Ratings for the Business Environment
Reform and Institutional Strengthening (BERIS) Project for
Albania were as follows: outcomes were moderately
satisfactory, risk... Show More + to development outcome was moderate, Bank
performance was moderately satisfactory, and Borrower
performance was moderately satisfactory. Some lessons
learned included: the project design should have taken into
consideration the complexity and time in constructing a
metrology laboratory, especially in a country, where
buildings do not exists. It is recommended that the
preparatory work be financed prior to project launch and the
Bank team invests more in planning complex project
activities with more expertise. Fewer, measurable, and
objective monitoring indicators and a well-designed
evaluation system will better assess the baselines and
subsequently achievement of project outcomes.
Well-functioning implementation unit, staffed with competent
and committed people and fairly remunerated is essential for
a successful implementation of a multi-component and a
complex project. The Bank team did not continue to work
through most of the project life. This disrupted project
continuity and contributed to delays in responding to the
changing external environment and to meeting the demands
from the Borrower quickly and effectively. It is advisable
that project management and supervision activities are
planned early and transferred appropriately. Show Less -

Private sector has a roleAt the meeting, ministers and policy makers discussed ways to mainstream natural capital accounting, including: working across ministries to ensure full government support; bringing... Show More + in the public and private sectors; and supporting and exchanging information and challenges with each other through regional and annual gatherings.The private sector is a key component of this work. The International Finance Corporation (IFC), part of the World Bank Group, is launching a natural capital program to create new methodologies and tools in collaboration with private companies. These will allow the private sector to measure, manage, report, and potentially value natural capital."Sound natural capital management goes hand in hand with benefits for companies, communities, and the environment,” said Usha Rao-Monari, director of Sustainable Business Advisory at the IFC. “Companies that take natural capital into account can save on resource use, access markets and financing, and mitigate major environmental and social risks," she added.The World Bank is supporting countries as they mainstream natural capital into national accounts and develop planning through a global partnership called WAVES (Wealth Accounting and the Valuation of Ecosystem Services).The WAVES partnership includes the United Nations Environment Programme, the United Nations Development Program, and the United Nations Statistical Commission; Botswana, Colombia, Costa Rica, Madagascar, and the Philippines, which are implementing programs; as well as several counties that are providing technical and financial support.A global action plan on NCA that lays the framework for its wider uptake was discussed at the meeting. It includes intensive support from partners and aims to build on the work already being done at the country level. Show Less -

In the first post-transition decade
after the fall of communism, Europe and Central Asia (ECA)
moved its economy from plan to market. In the second decade,
the 2000s,... Show More + it moved from social division to inclusion. The
region has an opportunity to use the third decade, the
2010s, to move from brown to green growth making production
and consumption more sustainable, increasing quality of
life, and reducing impacts on the climate. Lowering climate
change risks in ECA will involve many different actions that
fall broadly into three areas: Some, like energy efficiency
improvements, are often economically beneficial regardless
of climate concerns. Others, like creating a good business
environment for green enterprises, are investments that
create new growth opportunities. Finally, actions like
expanding wind and solar energy will have net costs for some
time but are essential to tackling climate change. A simple
framework helps guide climate action. The priorities are to
use energy more efficiently, use cleaner energy, and manage
natural resources better. Although price instruments like
carbon or energy taxes tend to be most effective, climate
action will also require regulations and investments such as
fuel efficiency standards or research and development
spending. Complementary growth, social, and environmental
policies promote the broader benefits of climate action
while limiting its costs. This report will show that climate
action in ECA will benefit from rapid progress in three main
areas: (a) large improvements in energy efficiency; (b) a
shift to cleaner energy systems that will also improve local
health and energy security; and (c) better management of
green natural resources that will make the countries more
economically productive while keeping more carbon out of the atmosphere. Show Less -

Bank Group ContributionThe International Bank for Reconstruction and Development (IBRD) provided approximately US$89 million for this project. The borrower contributed roughly US$30 million.PartnersThe... Show More + U.S. Environmental Protection Agency was a major partner, providing expert technical staff members of the project team throughout the project. Within Romania, project partners were the Ministry of Economy, the Commerce and the Business Environment (MECBE), the Ministry of Public Finance, the Romanian Agency for the Sustainable Development of Industrial Areas (RASDIA), and the Romanian Social Development Fund (RSDF).Moving ForwardThere are significant lessons learned from the implementation of the project, including strategic approaches to mine closure, incorporating robust environmental stewardship and state-of-the-art methodologies for mine-site monitoring. The approaches piloted under the project will be incorporated into the Romanian CONVERSMIN mine supervision agency and its ongoing duties in mine monitoring. Key project achievements include the strengthening of the legal framework for the management and implementation of mine closure. There is strong local stakeholder support for continued support in the sector.This investment operation is of particular relevance to EU accession and standards compliance, and to dealing with the environmental legacy of mine closure sites and providing incentives and opportunities for income generation and social welfare improvements.Beneficiaries “Over 1,500, 000 tons of coal were trucked over that bridge which, of course, collapsed. Our first objective was to ensure that this village was not cut off from the world. So the bridge was reconstructed. The second objective was to protect the village from a mining-waste land slide. Finally, our works made sure that water from the mine didn't run through the village,” says Mihaly Szocs, engineer at Cartel Bau S.A. Show Less -

ChallengeIn the rural areas of Turkey, people were seriously affected by natural resource degradation, involving declining agricultural yields, soil fertility, and incomes. Deforestation to meet... Show More + increasing timber, fuel, and fodder demands, together with the overgrazing of rangelands, farming on steep slopes, and lack of effective soil conservation practices on agricultural lands, resulted in widespread deterioration. In the early 2000s, the Government of Turkey launched an ambitious economic reform program to create the basis for stable economic growth and set the stage for the country’s entry into the European Union (EU). In the rural sector, this included a reform program that would increase Turkey’s agricultural competitiveness, protect its natural resources, and ensure improved livelihoods for the poor.SolutionThe Anatolia Watershed Rehabilitation Project was the second phase of successful World Bank support to Turkey targeting sustainable natural resource management and poverty reduction on a watershed basis. It combined International Bank for Reconstruction and Development (IBRD) and Global Environment Facility (GEF) sources to support a multi-sectoral, community-driven approach to natural resource management and rehabilitation at the micro-catchment level, income generation, and ground water pollution reduction. The rehabilitation of degraded rangelands through rotations and the introduction of organic matter, as well as tree planting activities, have reduced soil erosion and increased soil fertility and agricultural productivity. Through the introduction of improved manure and nutrient management practices as well as organic farming, nutrient loads in tributaries to the Black Sea have been significantly reduced. Finally, the AWRP project pioneered collaborative work between rural development agencies and demonstrated linkages between sustainable natural resource management and improved rural livelihoods. Show Less -

ResultsThrough the Business Environment Technical Assistance Project (2005–12), Kosovo’s business environment has improved, reflected in its jump of 28 places to 98 (out of 183 countries) in Doing Business... Show More + 2013. Improvements in the business climate include:registering a new business, which now takes about three days;establishing a one-stop shop for business registration, with joint tax and business registration;reducing the average time to start a business by six days in 2011, from 58 to 52 days;developing new legislation requiring the Business Registration Agency to process required documents within three rather than 10 days, as in 2009;amending the Laws on Business Organizations to increase minority investor protection. In the education sector (Institutional Development for Education Project 2007–13), the Bank has supported the implementation of the Strategy for Development of Pre-University Education in Kosovo and the Strategy for the Development of Higher Education:two framework laws—on Pre-University Education and Higher Education—were approved, clarifying the roles and responsibilities in education delivery;a total of 180 schools received School Development Grants to implement quality improvements, including training in school management, planning, and procurement;improvements in resource use were realized through strengthening the financing mechanism for pre-university education and implementing nation-wide school-financing autonomy;capacities were strengthened for planning and evidence-based policy making by supporting the development of key databases, such as the Education Management and Information System (EMIS) for pre-university education, the capacities of central, municipal, and school staff to use the software, and a comprehensive database of all school facilities that will guide planning and investments in infrastructure needs.In the energy sector, air pollution, particularly from the power stations and ash dumps near the capital Pristina, has remained a critical problem. Activities in clean-up and land reclamation have achieved the following results:14,000 tons of hazardous substances were treated and neutralized between 2009 and end-2012;almost 30,000 hectares of ash have been covered;almost 100,000 trees were planted on 30 hectares andoverburdened dumps were leveled.Since 2006, there has been continuous support for the financial sector to strengthen its stability and infrastructure. The central bank has:seen its institutions and sustainability strengthened, following the implementation of a strategy based on market development trends and a review of its funding-source options;revised the banking sector’s regulatory framework;provided assistance to the insurance sector, preparing a legal framework for third-party liability. Show Less -

Bank Group ContributionAs of December 31, 2012, the lending portfolio of the International Bank for Reconstruction and Development (IBRD) in Kazakhstan consisted of 12 active projects with total commitments... Show More + of US$3.6 billion in various sectors, including transport, energy, health, education, agriculture, environment, and public and private sector development. The IBRD portfolio is increasingly directed at institutional reform. In addition to lending, the IBRD provides extensive advisory services to the Government of Kazakhstan through the cofinanced JERP, which provides policy analysis, strategic planning expertise, and good practice options for economic and social development reform. JERP financing has grown from US$1 million a year since its inception in FY03 to over US$4.5 million in FY13. The JERP for FY13 comprises 28 interrelated analytical and advisory assistance activities, focusing on the government’s strategic priorities in the growth agenda: public finance management, social modernization, productivity and competitiveness, and a safe environment. As of December 31, 2012, the total committed portfolio of the International Finance Corporation (IFC) in Kazakhstan amounted to US$379 million, with 10 clients in financial markets, agribusiness, retail, construction materials, and the railway sector. In line with the Country Partnership Strategy (CPS), the IFC strategy in Kazakhstan focuses on improving the infrastructure, strengthening the financial sector, and supporting economic diversification and competitiveness. In addition to direct investments, IFC is providing advisory services to improve corporate governance, help the government structure public-private partnerships, and bring food safety standards to international levels. Partners The Bank closely collaborates with other multilateral institutions and development partners in Kazakhstan, comprising the Delegation of the European Union (EU), the United States Agency for International Development (USAID), the German Agency for International Cooperation (GIZ), the International Monetary Fund (IMF), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the United Nations Development Programme (UNDP), and the United Nations Children’s Fund (UNICEF). In the area of improving competitiveness and fostering job creation, partners provide support on expanding the role of the private sector and trade integration (EU, USAID), financial sector reforms (IMF), building skills (EU, GIZ), agriculture (GIZ), small and medium-sized enterprise development (ADB), electricity markets and investments (EBRD, USAID), and roads (ADB, EBRD). In the broad governance agenda, partners provide advice on local public administration reform, public sector implementation capacity (EU), civil service reform (EU, UNDP), customs reforms (USAID), judicial sector reforms (EC, GIZ, USAID), social protection (EU, UNICEF), and health (EC, USAID). In the area of the environment, partners focus on sustainability (EC, GIZ, UNDP) and energy efficiency (EBRD). Moving Forward The Bank’s CPS for 2013–17 is aligned with the government’s core development priorities outlined in the Kazakhstan Development Strategy until 2020, and supports the country’s long-term objective of joining the top 30 developed countries by 2050. The CPS emphasizes progress in the following broad areas of engagement: (i) improving competitiveness and fostering job creation, (ii) strengthening governance and public service delivery, and (iii) ensuring environmentally sustainable development. In each of the strategic CPS themes, key advisory activities are underway, mainly in a programmatic structure. An indicative lending program envelope for the first four years would be expected to total about US$2 billion (plus the mobilization of counterpart funds from the government), allocated to priority areas to advance institutional development and increase access to key public services. In accordance with the government’s preferences, all IBRD lending is foreseen in the form of investment projects. The CPS holds out the possibility of extending program-for-results financing in view of the capacity needs and strong results orientation of the investment programs, or deploying development policy operations to counter external shocks. Show Less -

The report is organized in seven
chapters. Following the introductory chapter, chapter two
sets the stage by reviewing the structure of Turkey's
economy and its performance,... Show More + as well as the challenges and
opportunities provided by Turkey's current growth path
from implementing a 'green agenda' linked to
achieving standards set by European Union (EU) Directives
and Organization for Economic Cooperation and Development
(OECD) principles; this is followed by a review of where
Turkey stands compared to developed and emerging economies,
in terms of what is broadly understood as a comprehensive
approach to green growth. Chapter three uses a narrower,
more operational, definition of green growth for the
purposes of the analysis undertaken in the policy note.
Chapter four presents an assessment of the seven strategic
sectors selected for a more focused analysis. It also
highlights the greening potential within these sectors.
Chapter five reviews the range of policy instruments
available in the European Union (EU) and other emerging
international experiences, as well as the relevance of these
policy options to the objectives of the policy note. Chapter
six presents the economy-wide framework and the results of
the pilot economic 'impact analysis' of two types
of greening scenarios: an urban scenario (linked to
production and consumption by firms and households) and a
rural scenario focused on agriculture. Finally, chapter
seven concludes with an initial set of recommendations. Show Less -

GEF Grant: US$5.4 million equivalentProject ID: P122694Project Description: The objective of the project is to enable rural people to increase their productive assets in ways that improve natural resource... Show More + management and resilience to climate change in selected climate vulnerable sites. Show Less -

WASHINGTON, March 29, 2013 – The World Bank Board of Executive Directors today approved a US$14.85 million grant for the Tajikistan Environmental Land Management and Rural Livelihoods Project, which aims... Show More + to support more sustainable management of natural resources and increase the resilience of communities to climate change impacts. The Tajikistan Environmental Land Management and Rural Livelihoods Project is being financed through a US$9.45 million grant from the Pilot Program for Climate Resilience of the Strategic Climate Fund (PPCR) and a US$5.4 million grant from the Global Environment Facility (GEF) Trust Fund. Tajikistan is one of 18 countries participating in the PPCR supported by Multilateral Development Banks. In Tajikistan, the participating Banks are the World Bank, the European Bank for Reconstruction and Development, and the Asian Development Bank. “Tajikistan is prone to natural disasters and it is assessed as the most vulnerable country to the impacts of future climate change in the Europe and Central Asia region. The project will help communities better understand how climate change may affect their land, water supply, livestock and crops. By using sustainable natural resource management practices that work well in Tajikistan, communities will have greater food security now and for the years to come,” said Marsha Olive, World Bank Country Manager for Tajikistan. The agriculture sector is important for Tajikistan, as it accounts for 21 percent of GDP and 64 percent of employment. The project aims to benefit farmers by helping them carry out more effective and sustainable production and land management practices, and thereby help build their resilience to climate change. The project will also support analytical work and capacity-building in areas related to climate change risks and adaptation, integrated land, water and grazing management, and incentive-based approaches for sustainable land management. The direct beneficiaries are expected to be at least 21,000 rural households or 126,000 people in selected project sites. Tajikistan’s trust fund portfolio — one of the largest in Europe and Central Asia — remains an important supplement to the resources from the International Development Association (IDA), accounting for about 30 percent of total combined commitments in 2010–12. The Tajikistan portfolio includes 47 trust-funded operations with US$87 million in commitments. The active portfolio of the World Bank in Tajikistan currently consists of 14 projects with a net commitment of around US$232.8 million. The largest share of the portfolio is in agriculture and rural development (27 percent), followed by energy (24 percent), water and sanitation (18 percent), human development – education, health, and social protection (24 percent), the private sector (4 percent), and the public sector (2 percent). Show Less -

March 29, 2013, ASTANA - A stakeholder consultations meeting with representatives of the Kazakh government was held in Astana to discuss the World Bank Safeguards environmental and social policies. A day... Show More + earlier, similar event with participation of civil society organizations of Kazakhstan took place in Almaty. The consultations will help the Bank outline the next generation of policies to enhance the development impact of the Bank-supported projects and programs. The World Bank environmental and social safeguard policies reflect core values of the institution and are the cornerstone of the Bank's efforts to protect people and the environment for ensuring sustainable development outcomes. The two-year review process aims at strengthening the effectiveness of the Bank’s safeguard guidelines, address environmental and social risks of the next decade as well as help the institution renew its partnership with borrowers based on a common vision and tailored capacity building.The review process will be conducted in three main phases and each will include a consultation period to stimulate input and feedback from a broad range of stakeholders in a participatory and transparent manner. The documents under review concern the eight different environmental and social safeguard policies, as well as the Policy on Piloting the Use of Borrower Systems for Environmental and Social Safeguards (“Use of Country Systems”) - OP 4.00.Kazakhstan was selected as one of the countries for the first phase of the consultations given its leading role in Central Asia and as a country with diverse World Bank’s lending portfolio. During the events, the participants shared their experiences and provided recommendations on advancing the Bank’s safeguard policies as well as capacity building in local systems and institutions. All the accumulated comments and recommendations will be used for drafting of an integrated framework, which will be further discussed by the Committee on Development Effectiveness of the World Bank’s Board of Executive Directors in mid-2013. The World Bank appreciates the willingness of its partners in countries for their valuable support in this imperative process of advancing safeguards policies. The Bank is looking forward to active engagement and advice of various stakeholders throughout the process. Comments could be submitted through the website www.worldbank.org/safeguardsconsultations or sent by email at safeguardconsult@worldbank.org. Show Less -

The development objectives of the
Additional Financing for the Municipal Infrastructure
Development Project for Tajikistan are to improve the
availability, quality and... Show More + efficiency of delivery of basic
municipal services to the population of the towns which
participate in the project will not change. In doing so, the
project will assist local governments in responding to
pressing public service needs of the local population.
Negative impacts include: damage to ecosystems, endangered
plant species; pollution of soil and water at construction
site with oil materials; daily checks of machinery for
leaking of oil, ban to wash machinery at construction site;
noise pollution in towns; and reduced amenity values of the
area. Mitigation measures include: 1) selection of pipeline
route to avoid habitats of endangered plant species; 2)
works performed strictly during the working hours; 3) proper
landscaping and replanting of construction area after
completion of piping works; 4) daily checks of machinery for
leaking of oil, ban on wash machinery at construction site;
5) collection of scrap asphalt and delivery to designated
landfills/dumpsites; 6) proper landscaping of slopes and
replanting of vegetation; and 7) foresee and provide
alternative access routes to kiosks, select proper timing
for civil works. Show Less -

Ratings for the Business Environment
Technical Assistance Project for Kosovo were as follows:
outcomes were moderately satisfactory; risk to development
outcome was... Show More + moderate; Bank performance was moderately
satisfactory and Borrower performance was also moderately
satisfactory. Some lessons learned includes: when there are
strong uncertainties, political volatilities and
institutional weaknesses, project should be as focused as
possible, avoiding disparate components. The project
financed only the very initial steps of licensing
harmonization. A much longer term agenda should have been
anticipated. Intensified efforts, carried out in the field
by the Bank Team are extremely crucial when the country and
institutions are still weak. Task managing the project from
Albania was a major advantage in the last stage of the
project and proved to be very positive. Even short
extensions could produce substantial gains if they are
introduced when conditions are favorable. Show Less -

The development objective of the
Additional Financing for the Municipal Infrastructure
Development Project (MIDP) for Tajikistan is to improve the
availability, quality... Show More + and efficiency of delivery of basic
municipal services to the population of the towns which
participate in the project. negative impacts includes:
permanent acquisition of land for works; permanent
acquisition of legal structure; loss of houses; loss of
business; loss of assets; and loss of trees, fruits, and
crops. Compensation measures includes: 1) replacement land
of equivalent market value as priority; 2) replacement
structure or cash compensation at replacement value of a new
structure plus full compensation for all fees needed to make
replacement new structure legal; 3) in kind compensation for
other effects such as alternative car parking facility; 4)
cash compensation of estimated business loss; 5) land
compensation, will be allowed to take standing crop and cash
compensation for 2 seasons or annual crop; and 6) cash
compensation for highest market price of 5 years harvest of
full mature tree or 7 years if tree already at full maturity. Show Less -

The objective of the project is to
support the government in supporting key sectors that will
drive competitiveness and growth in Georgia. The Government
recognizes... Show More + the need to go beyond basic business environment
reforms to strengthen the competitiveness of Georgian
industry and has asked for the World Bank to partner with it
as it seeks to develop its competitiveness agenda. Georgia
has undergone extensive business environment reforms over
the past several years and has achieved a remarkable
turnaround in its investment climate. The reforms had the
desired effect with in rapid growth which was temporarily
disrupted by the dual shocks of the August 2008 conflict and
the global financial crisis, resulting in a sharp downturn
in economic growth and rising unemployment and poverty.
Fortunately, the downturn was short-lived for Georgia as the
government aggressively addressed the crisis with an
effective stimulus program coupled with strong export growth
and tourism inflows which led to an economic recovery in
2010-2011 with 7 percent growth in Gross Domestic Product
(GDP) in 2011 and expected 6 percent growth in 2012. The
Georgian economy continues to expand despite the weaker
external environment. Despite the far reaching regulatory
reforms, competitiveness has remained modest. According to
the world economic forum global competitiveness index
2012-2013 report, Georgia ranked 77th out of 139 countries analyzed. Show Less -

WASHINGTON, January 29, 2013 – Rural communities of over 10 million people in eight regions of Uzbekistan will benefit from the US$12.699 million Global Environment Facility (GEF) grant financing for the... Show More + Sustainable Agriculture and Climate Change Mitigation Project approved today by the World Bank’s Board of Executive Directors. This is complementary financing to the US$120.66 million International Development Association (IDA) credit for the ongoing second phase of the Rural Enterprise Support Project. The Sustainable Agriculture and Climate Change Mitigation Project will promote the introduction of renewable energy and energy efficiency technologies of relevance to agribusinesses and farms, and strengthen capacity for improving degraded irrigated land and water conservation in Andijan, Bukhara, Jizzak, Kashkadarya, Samarkand, Syrdarya, Tashkent, and Fergana regions. According to Uzbekistan’s Second National Communication on Climate Change (2010), intensive warming has been observed over the entire country. With further acute water scarcity predicted for extremely warm and dry years, flows in the Syr Darya and Amu Darya Rivers Basins might decrease. The activities envisaged under the new GEF grant would contribute to mitigating and adapting to water scarcity, land degradation, and increased greenhouse gas emission risks. “The Sustainable Agriculture and Climate Change Mitigation Project responds to the country’s commitment to further reform agricultural sector and raise its importance on the economic agenda,” said Takuya Kamata, World Bank’s Country Manager for Uzbekistan. “The project will help rural communities in Uzbekistan to adopt, transfer, and replicate sustainable agriculture and land management practices aimed at restoring and improving irrigated land, while increasing economic opportunities for the rural population and improving environmental conditions.”The project components include: Promoting Renewable Energy Technologies (GEF US$9.0 million), Promoting Technologies and Practices to Mitigate Irrigated Land Degradation (GEF US$1.09 million) and Providing Advisory Services and Project Management (GEF US$2.60 million) Uzbekistan joined the World Bank in 1992. The World Bank’s mission in Uzbekistan is to improve people’s livelihoods through being a partner in economic reforms, supporting the modernization of the country’s social sectors and infrastructure, and sharing its knowledge and experience with the Government and the people of Uzbekistan.Total current World Bank commitments to Uzbekistan amount to US$894.5 million. Show Less -

Forests have a central role to play as the world confronts the challenges of climate change, food shortages, and improved livelihoods for a growing population. If predictions prove correct, the world will... Show More + need to shelter, feed, clothe, and provide livelihoods for another two billion people by 2050. This presents a staggering challenge, particularly given new research from the World Bank showing that world temperatures could rise by 4 degrees Celsius this century, impacting water availability, agriculture, and severe weather events. By 2025, two-thirds of all nations will confront water supply stress, and 2.4 billion people will live in countries unable to provide sufficient water for basic health, agriculture, and commercial needs.For centuries, forests have served as a kind of natural safety net for communities during times of famine or other events that impact agricultural and food production; they provide fruits, leaves, gum, nuts, timber, and wood for fuel. Forests feed people and the animals they might depend on for trade or meals when crops fail.At the same time, many of the world’s remaining forests are under increasing threat because of human activities and climate change. Although the pace of deforestation has slowed in some regions, the world still loses about 14.5 million hectares of forests each year. In parts of the Amazon rainforest, rising temperatures and changing rainfall patterns are connected with the increased risk of catastrophic dieback with dangerous local, regional and global consequences. In the Congo Basin, a recent analysis of deforestation trends published by the World Bank, highlights the intense pressure that agricultural expansion, mineral exploitation, growing energy needs, and an improved transportation network will pose to the integrity of this vast rainforest area.If countries are able to pursue inclusive green growth strategies that overcome some of the more severe trade-offs between growth and forest protection, the deforestation that has historically accompanied development in many countries could be slowed, making an important contribution to climate change mitigation.If the world is to confront the challenges of mitigating and adapting to climate change while meeting the demands of a rapidly-growing global population, it is vital that we find the balance between conserving and regenerating forest areas with economic growth for poverty reduction.This is what the World Bank’s work on forests aims to achieve.The World Bank’s approach to forestsA little over 10 years ago, the World Bank shifted course on its forest strategy to better reflect the reality that a forest is not simply a physical asset that can be cleared, logged or protected. In fact, a forest influences – and is impacted by – linkages to an array of other activities and sectors, particularly agriculture and water, but also energy, mining and transportation at the local, national and even global level. In its 2002 Forest Strategy, the World Bank spelled out this understanding and pledged to support countries in their efforts to harness the potential of forests to reduce poverty, better integrate forestry into their economies, and protect and strengthen the environmental role forests play, locally and globally.These three objectives have underpinned the World Bank’s work with governments, communities, and private enterprise across all the relevant sectors connected with forestry. In all, the Bank approved 289 forest-related projects in 75 countries between 2002 and 2011. The examples below provide a snapshot of some of the results accomplished in three thematic areas in that time.More resilient, integrated landscapes for poverty reductionOver the centuries, the world has experienced vast forest loss with the spread of agriculture and population growth. To reverse deforestation trends requires a change in policies and laws, institutions, and incentives, in and beyond the forestry sector. This “landscape” approach embraces activities such as restoring degraded forest land, boosting agricultural productivity, realigning farm and forest incentives to protect forests from being converted into farmland, introducing trees on farms and ranches, and involving local communities more directly in the design and oversight of forest management.The World Bank also emphasizes the benefits from integrating different farming approaches – including crop production, livestock, and tree farming – into one area, to diversify livelihoods, increase resilience to economic and climate shocks, and capitalize on natural synergies, for example in the water, carbon and nutrient cycles.In China, the World Bank was the biggest financier of an ambitious plan to increase forest cover after devastating floods along the Yangtze River. Between 1985 and 2007, the World Bank supported China's forestry sector through 8 projects covering 21 provinces, resulting in over 3.8 million ha of newly established forests (around 12 percent of the country's newly planted forests). Besides mitigating greenhouse gas emissions and reducing soil erosion, the increase in forest cover has had significant impacts on people’s livelihoods. One project specifically targeted poor areas in 12 provinces, training farmers to plant and care for a range of profitable trees. Economic trees like chestnut, gingko and bamboo helped boost average annual income by 150% between 1998 and 2004.In Albania, the World Bank worked with the government on a forest project that showcased the benefits of this landscape approach. By integrating forest, pasture, and agriculture management, the Bank-backed initiative led to reduced carbon emissions, the protection of important watersheds, and an increase of 28 percent in incomes in some areas from forests and agriculture. The project was successful in bringing more than 775,000 ha of land under the management of local communities.In Ethiopia’s Great Rift Valley, the World Bank partnered with World Vision to pilot an approach that was both integrated and inclusive and led to large-scale landscape restoration with significant livelihood and resilience outcomes. Forest cooperatives were created to oversee the reforestation of the Humbo mountain area by encouraging natural regeneration and limiting wood, charcoal and fodder extraction. Improved land management has stimulated grass growth, providing fodder for livestock that can be cut and sold as an additional source of income. The restored project area provides protection against dangerous landslides and improved water availability for more than 65,000 people. The project is expected to sequester over 880,000 metric tonnes of carbon dioxide-equivalent over 30 years, with the World Bank purchasing 165,000 metric tonnes worth of carbon credits through its BioCarbon Fund.These projects point to the tremendous potential to boost people’s physical and financial security by restoring degraded forest land. Worldwide, an estimated 2 billion hectares of lost or degraded forest landscapes could be restored and rehabilitated. If those “landscapes of opportunity” were to be restored to functional and productive ecosystems, they could help deliver a triple win by improving rural livelihoods and food security, increasing climate resilience, and helping mitigate greenhouse gases - while taking pressure off pristine forests.Managing natural capital for economic growthIn forest-rich countries, forestry can be a source of economic growth and employment. More than 160 million people worldwide find work through forest enterprises. If harvested responsibly, forests are also a renewable source of building material, fiber and fuel – tremendous assets as the world looks to reduce the carbon footprint of human activities. At the same time, forests are one of the most mismanaged resources in many countries, partly because they are undervalued and partly because poor governance has fuelled illegal activities.Helping governments to improve economic policy and the management and governance of the forest sector is therefore an important priority. The World Bank’s starting point is to ask how can practices that have often led to significant forest degradation, tax evasion and corruption, be reformed, so that forests contribute more revenue to the state, produce more and better jobs, and result in more sustainable development?The costs of inaction are severe. Worldwide, the failure by governments to collect royalties on the legal use of forests, costs them as much as US$5 billion a year in lost income. Illegal logging costs another US$10-US$15 billion every year in countries in which each dollar of state income is needed to reduce poverty. This sum is more than eight times the amount of money available from official developmental assistance (ODA) for the sustainable management of forests.The causes of illegal logging and other forest crimes are complex, and often lie outside the forestry sector. Weak governance, including unclear or nonexistent policies or legislation on the use of forest resources is a key issue. Weak institutional structures and an inability to monitor and enforce regulations also hamper progress in many countries. These weaknesses are difficult to address politically, since well-connected interest groups tend to benefit from the status quo and resist change.However over the last decade, the World Bank, the European Union and other partners have made significant strides in opening the space for dialogue and reform by backing Forest Law Enforcement and Governance (FLEG) processes in different parts of the world. The Program on Forests (PROFOR), hosted by the World Bank, has also made forest governance one of its priority issues, providing technical assistance to improve the monitoring of forest activities and helping create consensus and political will around priority reforms.Dialogue and engagement with developing countries has led to progress in the way forest rights are allocated. For example, in Cameroon, legal and regulatory reforms that were part of a wider concession reform effort resulted in the first legal recognition of community forests in any part of West Africa. In the Democratic Republic of Congo, a legal review of concessions led to a significant reduction in the area under concession management, to 9.7 million ha in 2008, from 43.5 million ha in 2002. At the same time, steps were taken to bring communities into decision-making processes in forest management, to clarify the rights of traditional forest users, and to develop new models for payments for environmental services. And in Gabon, around 4.7 million ha in forest concessions were cancelled, creating the opportunity to develop new approaches to sustainable forest management.In Mexico, where some 80 percent of forests are owned by indigenous and other communities, the World Bank helped fund a project to strengthen community forestry by improving forest management plans. The support, which was rolled out in phases since 1997, helped increase the contribution of forests to local development. For example, a project evaluation found that between 2003 and 2008, jobs had increased by 27% in targeted communities and ejidos, while the net value of forest goods and services they produced increased by 36%. In 2011 the coverage of this support was extended to all 32 states in Mexico.In Liberia, a forest-rich West African country where timber was once used to purchase weapons and fuel a devastating civil war, forest policy reform has slowly allowed the country to resume selective logging activities within an improved legal framework in which sustainable forest management principles, community rights and conservation needs are formally recognized. In 2010-2011, the World Bank, through the Program on Forests, stepped in to co-finance the roll out of a “chain of custody” system that tracks timber from the forest of origin to the point of export through barcodes and data forms. That system assisted in securing more than $27 million in net tax revenue for the state in 2008-2012. Although many implementation challenges remain, these reforms have benefited the country by creating greater transparency around logging revenue and a platform for stakeholders to demand more effective change.Through its private sector arm, the International Finance Corporation, the Bank Group has also encouraged responsible corporate investments across the forest products supply chain and worked to create a more level playing field for legitimate forest-sector enterprises that adopt sustainable forest management practices. For example, IFC started investing in 2003 in a company that produces high-quality particleboard products for the construction industry. The company has achieved Forest Stewardship Council certification for its 230,000-hectare concession in Russia, while encouraging third party suppliers to adhere to sustainable forest management practices.Valuing and preserving environmental servicesForests provide many essential environmental services, from absorbing and stocking carbon that would otherwise contribute to climate change, to regulating water cycles, hosting 80 percent of the world’s terrestrial biodiversity (including pollinators crucial to food security), maintaining soil quality, and reducing the risks of natural disasters such as floods at a time when many of these systems are coming under tremendous pressure. While these services have been difficult to quantify and value in the past, new research into natural capital accounting, innovative market approaches, and political awareness have contributed to a growing appreciation for the preservation of natural resources.The challenge for policy makers is to bring these values into markets, into decisions that affect more than one sector, and into macroeconomic and development policy in general. Over the last decade, the World Bank has worked with partners to increase financing for forest conservation and protection, and has been engaged in the development of effective markets for the environmental services that forests provide, including biodiversity protection, carbon sequestration, and watershed management.For example, the Bank played an active role in promoting the establishment of protected areas in the Brazilian Amazon. Bank teams worked for several years with local and federal authorities and non-governmental organizations (NGOs) including the World Wildlife Fund to protect Amazonian forests. The Amazon region accounts for an astonishing 30 percent of the world’s remaining tropical forests and about half of all the species on the planet but it has been under threat from the growth of agricultural and livestock areas and other logging activities. In its first phase, the Amazon Region Protected Areas project (ARPA) helped designate around 24 million hectares of new protected areas, an area roughly equal in size to the United Kingdom. Additionally, the project helped classify 45.4 million hectares as indigenous lands and set aside 2.1 million hectares into special reserves for sustainable, community-managed use. The project tackled successfully some of the daunting concerns in ecosystem protection today: enforcement of environmental laws in remote areas; the needs and aspirations of rural people for improved livelihoods; and the valuing and funding of conservation activities against a wider backdrop of ongoing resource exploitation. In its second phase, ARPA will cover nearly 70 million hectares of rainforest, saving more than 1.1 billion tons of CO2 emissions through 2050.The Bank Group has also explored a wide range of opportunities to help developing countries reduce greenhouse gas emissions from deforestation and forest degradation, and to conserve, sustainably manage and enhance forest carbon stocks. This approach, known as REDD+, will likely rest on a complex mix of multilateral and bilateral assistance, civil society efforts, private sector initiatives and carbon markets. The Bank’s approach has been to prepare and pilot different REDD+ initiatives through partnerships.The Bank serves as the Trustee and the Secretariat of the Forest Carbon Partnership Facility (FCPF), a global partnership that is helping countries draft REDD+ readiness plans and will provide carbon payments to countries that meet certain targets. The Bank is also the implementing organization, together with other multilateral development banks, of the Forest Investment Program (FIP), and is financing pilot investments for reforestation and soil carbon through the BioCarbon Fund, a public-private initiative that mobilizes resources for pioneering projects that deliver emission reductions, while promoting biodiversity conservation and poverty alleviation. Those interventions, blended with more conventional World Bank lending activities, are converging to create transformative change in the forest and broader rural sector in places like the Democratic Republic of Congo and Mexico.Such alliances are critical to ensuring the world has the funds necessary to confront the vast array of challenges in protecting and better managing forests. While the World Bank currently is the largest single source of finance in the multilateral community for forest projects, its loans and grants are only a fraction of what is needed to navigate the trade-offs between forest protection and economic growth and secure a prosperous and sustainable planet for future generations. Show Less -